GPT GROUP — Capital/Financing Update 2009

Apr 16, 2009

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Change in Rating Applied by Ratings Agency

17 April 2009

Moodys has advised that it has lowered GPT’s long-term issuer and senior unsecured ratings to Baa3 from Baa2. At the same time, the short-term rating has been lowered to P-3 from P-2. All ratings remain on review for possible downgrade.

The effect of the downgrade is primarily to increase the margin on drawn debt under the Group’s syndicated facility by approximately 50 basis points. Overall, the rating change is expected to result in an increase in the Group’s interest expense of approximately $20 million on an annualised basis, based on current drawn debt.

Whilst GPT is disappointed in the decision, particularly in light of recent progress in relation to asset sales as announced by the Group this week, GPT continues to be actively focused on the issues highlighted by ratings agencies in relation to the sector and on improving the Group’s capital position.

The Group is making progress on non core asset sales and announced the sale of interests in its wholesale funds on 15 April 2009. Combined with the sale of $86 million of non core assets, this brings the total of assets sold to close to $230 million over the last four months. On completion of the sale of the interests in the Funds and recent non core assets, GPT’s December 2008 balance sheet gearing (net of cash) is reduced to 32.5% on a pro forma basis.

The Group has no drawn debt expiring this year and is actively engaged in discussions regarding its multi-option syndicated facility expiring in October 2010. In addition, GPT has announced the reactivation of the Distribution Reinvestment Plan to be effective for the March 2009 quarter distribution and has the ability to underwrite this Plan, subject to the progress of asset sales.

Ends

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